What is rate type specification in SAP (FI-GL-GL - Basic Functions)?

SAP Term: rate type specification

• Component: FI-GL-GL

• Component Name: Basic Functions

• Description: Object that groups rate types for local currency, 2nd local currency and 3rd local currency into a rate type specification.

Smart SAP Assistant

• Key Concepts: 
  Rate type specification is a feature of the SAP Financial Accounting (FI) module. It allows users to define different types of exchange rates for different currencies. This enables users to accurately calculate the value of foreign currency transactions. 
  
  How to use it: 
  To use rate type specification, users must first define the rate types in the system. This can be done by entering the rate type name, description, and exchange rate in the system. Once the rate types have been defined, users can then assign them to different currencies. This will enable the system to automatically calculate the exchange rate when a transaction is entered in a foreign currency. 
  
  Tips & Tricks: 
  When defining rate types, it is important to ensure that they are accurate and up-to-date. This will ensure that transactions are calculated correctly and that any discrepancies are avoided. Additionally, it is important to ensure that all relevant currencies are included in the rate type specification. 
  
  Related Information: 
  For more information on rate type specification, please refer to the SAP Help Portal or contact your local SAP support team.